[The-Shoveler]

A lot of these were not loanable in the “as is” condition.

[The-Shoveler]

From what I remember about that time I think people were saying something to the effect that getting a loan on a “as is” foreclosure was somewhat problematic

Also it may have been a lot easier to qualify for a loan and the rates even better had they waited and had a few years retail income verified. but what do I know..

What AN just said.

[The-Shoveler]

When you are working and you can’t feed and get medicine for your kid’s

Well you will throw a stone at something.
The only thing that has prevented it so far is food stamps and Medi-Cal.

[The-Shoveler]

If it were not for food-stamps and medi-Cal the walmart and mcd’s workers would have been throwing stones a long time ago.

[The-Shoveler]

They have wage riots in China all the time, we just don’t hear about them.

Coming soon to a city near you!

The only thing that has stopped it so far is welfare

Anyway just my opinion.

[The-Shoveler]

[quote=SD Realtor]Ummm Shoveler as Forbes points out, actually, is that the price of the meal may not move at all.

McDonalds would simply find out a way to keep the overall labor costs the same. They would pay the workers 15 bucks an hour and then reduce the workforce by the same amount through automation.[/quote]

They are going reduce the workforce by automation regardless.

It’s going to become cheaper and cheaper to use more and more sophisticated automation very quickly.

[The-Shoveler]

I remember reading some guy ran the numbers and a big mac meal would need to go up about a dollar to make up the cost if the wages went from current about $8.00 to $15 an hour.

http://www.forbes.com/sites/clareoconnor/2013/07/30/how-much-would-a-big-mac-cost-if-mcdonalds-workers-were-paid-15-per-hour/

I think I could live with that.

[The-Shoveler]

[quote=kev374]
There was just a report that since 2007 median household incomes in the US have FALLEN 4.4%. LOL![/quote]

Exactly my point.

The current low wage inflation is NOT normal.

[The-Shoveler]

The train has kind of left the station for Condo’s in TV (not sure there is much meat on the bone at this point).

They are selling new ones in the 150-200K range.

[The-Shoveler]

For those who get fixed rates and buy the house they want, I guess it comes down to flow.

It looks like a good theory,
But in a world where the fed Gov regulates minimum wage and interest rates, well I guess we will have to wait and see.

Also I am not necessarily advocating wage inflation, just stating what we have seen in low wage inflation and become so use to it as to not be able to imagine what 10% wage inflation would look like, a world most other nations have to deal with.

It is not the norm is all.

[The-Shoveler]

Try the US Gov census.

http://www.census.gov/const/uspricemon.pdf

But I think this is missing the point,

It is the strangeness of the lack of wage inflation since 1990.

[The-Shoveler]

Anyway, something to think about if we ever start seeing wage inflation north of 8% again.

[The-Shoveler]

There is missing the crazy no doc loans of 2004-2006. so I don’t think so and the builders have just barely started to add inventory that is far behind need now after 5 years of almost no building.

[The-Shoveler]

It was NOT every year but I remember quite a few.

Average U.S.A. home price went from 29K in 1973 to about 125K in 1990.

California home prices went up quite a bit higher in price as did California wages.

I think you would have had to live it.

[The-Shoveler]

I don’t think we will get a crash, maybe a small decline or level off for a while.
It would take something external to the housing market to cause a crash IMO.
Housing market has been purged of weak hands already for the most part.

[Author]

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